Mondelez International to buy 80% in Vietnam's Kinh Do Corp's snack business for $370 mn
11 November 2014
Mondelez International Inc today said that it will acquire an 80-per cent stake in Vietnam's Kinh Do Corp's snack business for $370 million.
Mondelez (earlier called Kraft Foods) will acquire two Kinh Do manufacturing facilities, and Kinh Do's distribution network, and has the option to buy the remaining stake a year after completion of the current deal, which is expected to close in the second quarter of 2015.
"Our significant investment in Kinh Do and Vietnam is a perfect fit for our growth strategy in Asia Pacific, strengthening our core snacking categories in a high-growth dynamic market," said Tim Cofer, executive vice president and president, Asia Pacific for Mondelez International.
"The love and trust of customers along with the efforts of our employees over the past two decades have made Kinh Do's brands what they are today," said Tran Kim Thanh, chairman of Kinh Do. "We're proud to be able to bring Kinh Do to the next level of growth and to offer new tastes to consumers – not only in Vietnam but the world."
Founded in 1993 by a small group of entrepreneurs, Kinh Do Corp is Vietnam's largest confectionary company by both sales and production volumes.
The Ho Chi Minh City-based company posted revenue of nearly $219 million in 2013 and pre-tax profit of $29 million.
It holds leading positions in biscuits, buns, cakes, moon cakes, ice cream, snacks and chocolates.
Apart from its flagship brand Kinh Do, its other product brands to include AFC, Cosy, Moon Cake, Solite, Scotti, Merino, Celano, Trang Vang among others.